ANHEUSER-BUSCH INBEV-SPN ADR (BUD) Stock Fundamental Analysis
NYSE:BUD - New York Stock Exchange, Inc. - US03524A1088 - ADR - Currency: USD
Taking everything into account, BUD scores 4 out of 10 in our fundamental rating. BUD was compared to 32 industry peers in the Beverages industry. BUD has a medium profitability rating, but doesn't score so well on its financial health evaluation. BUD is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
BUD had positive earnings in the past year.
In the past year BUD had a positive cash flow from operations.
Each year in the past 5 years BUD has been profitable.
In the past 5 years BUD always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.83%, BUD is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of 7.48%, BUD is in line with its industry, outperforming 40.63% of the companies in the same industry.
With a Return On Invested Capital value of 6.49%, BUD perfoms like the industry average, outperforming 40.63% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BUD is significantly below the industry average of 12.07%.
The 3 year average ROIC (6.05%) for BUD is below the current ROIC(6.49%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.83% | ||
| ROE | 7.48% | ||
| ROIC | 6.49% |
ROA(3y)2.69%
ROA(5y)2.17%
ROE(3y)7.38%
ROE(5y)6.2%
ROIC(3y)6.05%
ROIC(5y)5.66%
1.3 Margins
The Profit Margin of BUD (9.80%) is better than 71.88% of its industry peers.
BUD's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 25.87%, BUD belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
In the last couple of years the Operating Margin of BUD has declined.
Looking at the Gross Margin, with a value of 55.25%, BUD is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
BUD's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.87% | ||
| PM (TTM) | 9.8% | ||
| GM | 55.25% |
OM growth 3Y-0.42%
OM growth 5Y-3.7%
PM growth 3Y4.44%
PM growth 5Y-10.98%
GM growth 3Y-1.3%
GM growth 5Y-1.99%
2. Health
2.1 Basic Checks
BUD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
BUD has less shares outstanding than it did 1 year ago.
BUD has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BUD has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.77, we must say that BUD is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.77, BUD perfoms like the industry average, outperforming 46.88% of the companies in the same industry.
BUD has a debt to FCF ratio of 6.45. This is a slightly negative value and a sign of low solvency as BUD would need 6.45 years to pay back of all of its debts.
BUD has a Debt to FCF ratio (6.45) which is in line with its industry peers.
A Debt/Equity ratio of 0.90 indicates that BUD is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.90, BUD is in line with its industry, outperforming 43.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 6.45 | ||
| Altman-Z | 1.77 |
ROIC/WACC1.03
WACC6.31%
2.3 Liquidity
A Current Ratio of 0.70 indicates that BUD may have some problems paying its short term obligations.
BUD has a worse Current ratio (0.70) than 84.38% of its industry peers.
BUD has a Quick Ratio of 0.70. This is a bad value and indicates that BUD is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.54, BUD is doing worse than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.08% over the past year.
Measured over the past years, BUD shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.83% on average per year.
Looking at the last year, BUD shows a small growth in Revenue. The Revenue has grown by 0.65% in the last year.
BUD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.69% yearly.
EPS 1Y (TTM)15.08%
EPS 3Y4.79%
EPS 5Y-1.83%
EPS Q2Q%7.32%
Revenue 1Y (TTM)0.65%
Revenue growth 3Y3.25%
Revenue growth 5Y2.69%
Sales Q2Q%2.54%
3.2 Future
Based on estimates for the next years, BUD will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.11% on average per year.
The Revenue is expected to grow by 4.38% on average over the next years.
EPS Next Y4.12%
EPS Next 2Y8.45%
EPS Next 3Y12.23%
EPS Next 5Y12.11%
Revenue Next Year1.73%
Revenue Next 2Y3.13%
Revenue Next 3Y3.49%
Revenue Next 5Y4.38%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.67, BUD is valued correctly.
81.25% of the companies in the same industry are more expensive than BUD, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.85. BUD is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 16.00 indicates a correct valuation of BUD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BUD indicates a somewhat cheap valuation: BUD is cheaper than 75.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.77. BUD is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.67 | ||
| Fwd PE | 16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BUD is valued cheaper than 81.25% of the companies in the same industry.
93.75% of the companies in the same industry are more expensive than BUD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.31 | ||
| EV/EBITDA | 8.74 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BUD does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as BUD's earnings are expected to grow with 12.23% in the coming years.
PEG (NY)4.04
PEG (5Y)N/A
EPS Next 2Y8.45%
EPS Next 3Y12.23%
5. Dividend
5.1 Amount
With a yearly dividend of 0.99%, BUD is not a good candidate for dividend investing.
BUD's Dividend Yield is comparable with the industry average which is at 3.03.
With a Dividend Yield of 0.99, BUD pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
5.2 History
The dividend of BUD decreases each year by -12.03%.
BUD has been paying a dividend for at least 10 years, so it has a reliable track record.
BUD has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-12.03%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
45.64% of the earnings are spent on dividend by BUD. This is a bit on the high side, but may be sustainable.
DP45.64%
EPS Next 2Y8.45%
EPS Next 3Y12.23%
65.02
-0.79 (-1.2%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners17.94%
Inst Owner Change0.03%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap126.56B
Analysts83.13
Price Target81.33 (25.08%)
Short Float %0.56%
Short Ratio2.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
Yearly Dividend1.35
Dividend Growth(5Y)-12.03%
DP45.64%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.01%
Min EPS beat(2)5.76%
Max EPS beat(2)20.27%
EPS beat(4)4
Avg EPS beat(4)10.29%
Min EPS beat(4)4.3%
Max EPS beat(4)20.27%
EPS beat(8)8
Avg EPS beat(8)6.77%
EPS beat(12)10
Avg EPS beat(12)7.21%
EPS beat(16)13
Avg EPS beat(16)7.45%
Revenue beat(2)1
Avg Revenue beat(2)0.19%
Min Revenue beat(2)-4.2%
Max Revenue beat(2)4.57%
Revenue beat(4)2
Avg Revenue beat(4)-0.03%
Min Revenue beat(4)-4.2%
Max Revenue beat(4)4.57%
Revenue beat(8)2
Avg Revenue beat(8)-1.53%
Revenue beat(12)4
Avg Revenue beat(12)-1.48%
Revenue beat(16)7
Avg Revenue beat(16)-0.4%
PT rev (1m)10.53%
PT rev (3m)12.02%
EPS NQ rev (1m)6.98%
EPS NQ rev (3m)0.15%
EPS NY rev (1m)7.92%
EPS NY rev (3m)4.81%
Revenue NQ rev (1m)-0.76%
Revenue NQ rev (3m)-3.87%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.67 | ||
| Fwd PE | 16 | ||
| P/S | 2.12 | ||
| P/FCF | 11.31 | ||
| P/OCF | 8.41 | ||
| P/B | 1.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.74 |
EPS(TTM)3.9
EY6%
EPS(NY)4.06
Fwd EY6.25%
FCF(TTM)5.75
FCFY8.84%
OCF(TTM)7.73
OCFY11.9%
SpS30.71
BVpS40.2
TBVpS-37.13
PEG (NY)4.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.83% | ||
| ROE | 7.48% | ||
| ROCE | 8.91% | ||
| ROIC | 6.49% | ||
| ROICexc | 6.95% | ||
| ROICexgc | 96.58% | ||
| OM | 25.87% | ||
| PM (TTM) | 9.8% | ||
| GM | 55.25% | ||
| FCFM | 18.73% |
ROA(3y)2.69%
ROA(5y)2.17%
ROE(3y)7.38%
ROE(5y)6.2%
ROIC(3y)6.05%
ROIC(5y)5.66%
ROICexc(3y)6.43%
ROICexc(5y)6.06%
ROICexgc(3y)81%
ROICexgc(5y)72.75%
ROCE(3y)8.3%
ROCE(5y)7.79%
ROICexcg growth 3Y11.31%
ROICexcg growth 5Y15.72%
ROICexc growth 3Y4.65%
ROICexc growth 5Y2.73%
OM growth 3Y-0.42%
OM growth 5Y-3.7%
PM growth 3Y4.44%
PM growth 5Y-10.98%
GM growth 3Y-1.3%
GM growth 5Y-1.99%
F-Score8
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 6.45 | ||
| Debt/EBITDA | 3.37 | ||
| Cap/Depr | 69.68% | ||
| Cap/Sales | 6.46% | ||
| Interest Coverage | 4.24 | ||
| Cash Conversion | 71.67% | ||
| Profit Quality | 191.15% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 1.77 |
F-Score8
WACC6.31%
ROIC/WACC1.03
Cap/Depr(3y)85.67%
Cap/Depr(5y)89.39%
Cap/Sales(3y)7.73%
Cap/Sales(5y)8.33%
Profit Quality(3y)163.01%
Profit Quality(5y)238.24%
High Growth Momentum
Growth
EPS 1Y (TTM)15.08%
EPS 3Y4.79%
EPS 5Y-1.83%
EPS Q2Q%7.32%
EPS Next Y4.12%
EPS Next 2Y8.45%
EPS Next 3Y12.23%
EPS Next 5Y12.11%
Revenue 1Y (TTM)0.65%
Revenue growth 3Y3.25%
Revenue growth 5Y2.69%
Sales Q2Q%2.54%
Revenue Next Year1.73%
Revenue Next 2Y3.13%
Revenue Next 3Y3.49%
Revenue Next 5Y4.38%
EBIT growth 1Y5.98%
EBIT growth 3Y2.81%
EBIT growth 5Y-1.1%
EBIT Next Year41.45%
EBIT Next 3Y16.39%
EBIT Next 5Y12.38%
FCF growth 1Y29.73%
FCF growth 3Y6.91%
FCF growth 5Y4.78%
OCF growth 1Y13.49%
OCF growth 3Y0.57%
OCF growth 5Y1.41%